GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Personal Services » Service Corp International (NYSE:SCI) » Definitions » Beneish M-Score

SCI (Service International) Beneish M-Score : -1.72 (As of Oct. 31, 2024)


View and export this data going back to 1987. Start your Free Trial

What is Service International Beneish M-Score?

The zones of discrimination for M-Score is as such:

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator.
An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Warning Sign:

Beneish M-Score -1.72 higher than -1.78, which implies that the company might have manipulated its financial results.

The historical rank and industry rank for Service International's Beneish M-Score or its related term are showing as below:

SCI' s Beneish M-Score Range Over the Past 10 Years
Min: -2.83   Med: -2.56   Max: -1.18
Current: -1.72

During the past 13 years, the highest Beneish M-Score of Service International was -1.18. The lowest was -2.83. And the median was -2.56.


Service International Beneish M-Score Historical Data

The historical data trend for Service International's Beneish M-Score can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Service International Beneish M-Score Chart

Service International Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Beneish M-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only -2.45 -2.56 -2.37 -2.76 -1.45

Service International Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
Beneish M-Score Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -1.18 -1.45 -1.83 -1.72 -

Competitive Comparison of Service International's Beneish M-Score

For the Personal Services subindustry, Service International's Beneish M-Score, along with its competitors' market caps and Beneish M-Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Service International's Beneish M-Score Distribution in the Personal Services Industry

For the Personal Services industry and Consumer Cyclical sector, Service International's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Service International's Beneish M-Score falls into.



Service International Beneish M-Score Calculation

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Altman Z-Score) or business trend (Piotroski F-Score), M-score can be used to detect the risk of earnings manipulation. This is the original research paper on M-score.

The M-Score Variables:

The M-score of Service International for today is based on a combination of the following eight different indices:

M=-4.84+0.92 * DSRI+0.528 * GMI+0.404 * AQI+0.892 * SGI+0.115 * DEPI
=-4.84+0.92 * 0.6083+0.528 * 1.0304+0.404 * 1.0295+0.892 * 1.019+0.115 * 0.992
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.7537+4.679 * -0.02679-0.327 * 0.9463
=-2.86

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

This Year (Sep24) TTM:Last Year (Sep23) TTM:
Total Receivables was $133 Mil.
Revenue was 1013.958 + 1034.016 + 1045.382 + 1055.796 = $4,149 Mil.
Gross Profit was 252.639 + 257.915 + 274.213 + 287.562 = $1,072 Mil.
Total Current Assets was $389 Mil.
Total Assets was $17,406 Mil.
Property, Plant and Equipment(Net PPE) was $4,678 Mil.
Depreciation, Depletion and Amortization(DDA) was $321 Mil.
Selling, General, & Admin. Expense(SGA) was $169 Mil.
Total Current Liabilities was $743 Mil.
Long-Term Debt & Capital Lease Obligation was $4,744 Mil.
Net Income was 117.827 + 118.166 + 131.301 + 138.395 = $506 Mil.
Non Operating Income was 6.305 + 3.649 + 1.778 + 1.894 = $14 Mil.
Cash Flow from Operations was 263.795 + 196.877 + 220.123 + 277.585 = $958 Mil.
Total Receivables was $215 Mil.
Revenue was 1001.859 + 1013.414 + 1028.709 + 1027.683 = $4,072 Mil.
Gross Profit was 253.683 + 261.468 + 289.094 + 280.088 = $1,084 Mil.
Total Current Assets was $454 Mil.
Total Assets was $15,683 Mil.
Property, Plant and Equipment(Net PPE) was $4,431 Mil.
Depreciation, Depletion and Amortization(DDA) was $302 Mil.
Selling, General, & Admin. Expense(SGA) was $220 Mil.
Total Current Liabilities was $713 Mil.
Long-Term Debt & Capital Lease Obligation was $4,512 Mil.




1. DSRI = Days Sales in Receivables Index

Measured as the ratio of Revenue in Total Receivables in year t to year t-1.

A large increase in DSR could be indicative of revenue inflation.

DSRI=(Receivables_t / Revenue_t) / (Receivables_t-1 / Revenue_t-1)
=(133.442 / 4149.152) / (215.27 / 4071.665)
=0.032161 / 0.05287
=0.6083

2. GMI = Gross Margin Index

Measured as the ratio of gross margin in year t-1 to gross margin in year t.

Gross margin has deteriorated when this index is above 1. A firm with poorer prospects is more likely to manipulate earnings.

GMI=GrossMargin_t-1 / GrossMargin_t
=(GrossProfit_t-1 / Revenue_t-1) / (GrossProfit_t / Revenue_t)
=(1084.333 / 4071.665) / (1072.329 / 4149.152)
=0.266312 / 0.258445
=1.0304

3. AQI = Asset Quality Index

AQI is the ratio of asset quality in year t to year t-1.

Asset quality is measured as the ratio of non-current assets other than Property, Plant and Equipment to Total Assets.

AQI=(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t) / (1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
=(1 - (389.094 + 4678.042) / 17406.351) / (1 - (453.801 + 4430.721) / 15683.137)
=0.708892 / 0.688549
=1.0295

4. SGI = Sales Growth Index

Ratio of Revenue in year t to sales in year t-1.

Sales growth is not itself a measure of manipulation. However, growth companies are likely to find themselves under pressure to manipulate in order to keep up appearances.

SGI=Sales_t / Sales_t-1
=Revenue_t / Revenue_t-1
=4149.152 / 4071.665
=1.019

5. DEPI = Depreciation Index

Measured as the ratio of the rate of Depreciation, Depletion and Amortization in year t-1 to the corresponding rate in year t.

DEPI greater than 1 indicates that assets are being depreciated at a slower rate. This suggests that the firm might be revising useful asset life assumptions upwards, or adopting a new method that is income friendly.

DEPI=(Depreciation_t-1 / (Depreciaton_t-1 + PPE_t-1)) / (Depreciation_t / (Depreciaton_t + PPE_t))
=(301.517 / (301.517 + 4430.721)) / (321.086 / (321.086 + 4678.042))
=0.063716 / 0.064228
=0.992

Note: If the Depreciation, Depletion and Amortization data is not available, we assume that the depreciation rate is constant and set the Depreciation Index to 1.

6. SGAI = Sales, General and Administrative expenses Index

The ratio of Selling, General, & Admin. Expense(SGA) to Sales in year t relative to year t-1.

SGA expenses index > 1 means that the company is becoming less efficient in generate sales.

SGAI=(SGA_t / Sales_t) / (SGA_t-1 /Sales_t-1)
=(169.129 / 4149.152) / (220.206 / 4071.665)
=0.040762 / 0.054083
=0.7537

7. LVGI = Leverage Index

The ratio of total debt to Total Assets in year t relative to yeat t-1.

An LVGI > 1 indicates an increase in leverage

LVGI=((LTD_t + CurrentLiabilities_t) / TotalAssets_t) / ((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
=((4743.679 + 743.186) / 17406.351) / ((4511.533 + 712.872) / 15683.137)
=0.315222 / 0.333122
=0.9463

8. TATA = Total Accruals to Total Assets

Total accruals calculated as the change in working capital accounts other than cash less depreciation.

TATA=(IncomefromContinuingOperations_t - CashFlowsfromOperations_t) / TotalAssets_t
=(NetIncome_t - NonOperatingIncome_t - CashFlowsfromOperations_t) / TotalAssets_t
=(505.689 - 13.626 - 958.38) / 17406.351
=-0.02679

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator. An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Service International has a M-score of -2.86 suggests that the company is unlikely to be a manipulator.


Service International Beneish M-Score Related Terms

Thank you for viewing the detailed overview of Service International's Beneish M-Score provided by GuruFocus.com. Please click on the following links to see related term pages.


Service International Business Description

Traded in Other Exchanges
Address
1929 Allen Parkway, Houston, TX, USA, 77019
Service Corp International is a personal services company that provides funeral and cemetery services and products from its locations throughout the United States and Canada. The company segments its operations into funeral service and cemetery business functions. At its funeral service locations, Service Corp. provides all professional services, facilities, vehicles, and merchandise related to funerals and cremations. Cemetery locations provide cemetery property, memorial markers, and graveyard services to customers. Service Corp. derives the majority of its revenue from its funeral locations, while the cemetery division also generates an amount of the company's total income. Geographically, the company derives majority share of revenue from the United States.
Executives
Steven A Tidwell officer: V.P. Main Street Operations 1929 ALLEN PARKWAY, HOUSTON TX 77019
Tony Coelho director C/O PINNACLE GLOBAL GROUP, 5599 SAN FELIPE #1212, HOUSTON TX 77056
Ellen Ochoa director 1929 ALLEN PARKWAY, HOUSTON TX 77019
Thomas L Ryan officer: President,Chief Operating Off. 1929 ALLEN PARKWAY, HOUSTON TX 77219
Tammy R Moore other: Corporate Controller 1929 ALLEN PARKWAY, HOUSTON TX 77019
Eric D Tanzberger officer: VP, Corporate Controller 1929 ALLEN PARKWAY, HOUSTON TX 77219
Victor L Lund director ONE RAVINIA DRIVE, STE 1500, ATLANTA GA 30346
Waring Sumner J Iii officer: VP Western Operations 1929 ALLEN PARKWAY, HOUSTON TX 77219
W Blair Waltrip director C/O PINNACLE GLOBAL GROUP, 5599 SAN FELIPE #1212, HOUSTON TX 77056
John H Faulk officer: Vice Pres Business Development 1929 ALLEN PARKWAY, HOUSTON TX 77019
Elisabeth G. Nash officer: V.P. Processes & Technology 1929 ALLEN PARKWAY, HOUSTON TX 77019
Lori Spilde officer: Sr. V.P. and General Counsel 1929 ALLEN PARKWAY, HOUSTON TX 77019
Buckwalter Alan R Iii director
Jakki L. Haussler director 221 EAST FOURTH STREET, CINCINNATI OH 45202
Gregory T Sangalis officer: Sr. V.P. and General Counsel 46 HIBURY DRIVE, HOUSTON TX 77024